Improving horizontal logistic co-operation through different concessions

Purpose: When collaborating, partners inevitably suffer changes in the way of working, costs or service aspects. However, some changes are easier to implement than others, and can be (easily) compensated by the positive effects of collaboration. This paper aims to give an overview of the concessions that early collaborators in Belgium have made or are willing to make in order for the collaboration to succeed. Design/methodology/approach: In-depth interviews with six managers of forwarding companies in Belgium have been conducted. Five of these managers are already involved in logistics collaboration projects, a sixth does not believe in horizontal collaboration. Findings: Our research shows that companies are not unwilling to execute changes when entering a logistics collaboration project. Cost increases are the most difficult to accept, while changes in the organization of processes and the supply chain are often the preferred kind of concession. Service level aspects can also be changed, however, which kind of aspects is highly dependent on the characteristics of the partner. Moreover, negative impact on one aspect of the service has to be compensated by an improvement in service level on another aspect. Originality/value: This research offers new case studies regarding horizontal logistics collaboration projects. The focus of this research is –in contrast to the main literature focusing on the adoption and start of horizontal cooperation– the actual execution phase. The insights of this research can act as a guideline when discussing the execution of horizontal logistics cooperation.